Eichel: reduceren Duits begrotingstekort zware opgave (en)

Germany is struggling to fulfil its promise to European leaders to reduce budget deficit in 2005 in order to meet the European Union stability pact rules, Hans Eichel the German finance minister has admitted.

It would be a "difficult task" for Berlin to keep the promise that Germany would comply in 2005 with the stability pact rules, Mr Eichel said according to the Financial Times.

Germany has broken the rules three years in a row, however it still escaped the sanctions last month by saying that budged deficit in 2005 will meet the EU rules.

The signal by finance minister is expected to provoke criticism from Brussels and other EU capitals.

Reducing the budget deficit below three per cent in 2005 "is without doubt a difficult task. However, the promise [to the EU] stands," told Mr Eichel to Die Welt newspaper.

Number of reforms and tax measures adopted last week in Germany, make it even more difficult to reduce the budget deficit in 2005, writes the FT.